New York Fed Launching Pilot Program for Small Brokers, Open Market Operations

The Federal Reserve Bank of New York said Wednesday it was launching a test program with small broker-dealers to see if these firms can effectively take part in the central bank’s monetary policy operations.

The bank said in a press release that it was seeking five small broker-dealers for a one-year pilot program. The New York Fed said it is starting the program “to explore ways to broaden access to monetary policy operations, and to determine the extent to which additional counterparties beyond the Primary Dealers can augment the New York Fed’s operational capacity and resiliency in its monetary policy operations.”

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